SAG-AFTRA’s health plan announced changes that would increase premiums for members and limit eligibility rules. The changes are, according to a memo sent to union members Wednesday night, in response to projected deficits in the tens of millions of dollars for 2020 and 2021.
“Without restructuring the health plan, we are projecting a deficit of $ 141 million and $ 83 million in 2021 this year, and by 2024, the health plan is projected to run reserves,” the memo said. “We need to prevent this from happening.”
According to the memo, rising health care costs and the closure of the entertainment industry have contributed to the difficult situation of the health plan. A newsletter that accompanies the memo, and is sent to union members, describes the changes, which will include new qualification requirements and the combination of Plan I and Plan II in one health care plan.
One of the most important changes appears to be in how union members’ marriages are covered. According to the newsletter, if a measure of a union member’s health insurance is offered by their employer, then the measure must accept and move that coverage from the SAG-AFTRA plan.
The newsletter also describes new premiums. Coverage for one participant in the plan will increase to $ 375 per quarter; for one participant and one dependent, the premium will be $ 531 per quarter; premiums for one participant and two or more dependents will be $ 747 per quarter.
The combination of the two plans eliminates the lower-threshold tier-two plan, which was available to members who made at least $ 18,040 a year. Gone is also the top tier plan, with its $ 35,020 threshold. Under the new combined plan, members would have to make $ 25,950 to qualify. But the change means that workers who would be eligible for insurance under Plan II this year would not be eligible for the same income level next year.
“We understand that no one welcomes the disruption of changing health coverage – even if comparable, cheaper alternatives are available – but it is important to note that those participants who lose planning coverage may still have good, affordable health insurance options,” it says. health plan memo went through.
